| Where do you get money for starting a business? | | | | financial institution for a loan. This is not always a |
| Well, some people save a little extra from their regular | | | | popular choice due to the fact that the loan has to be |
| job or may take on a little overtime for a specified | | | | paid back within a specified time period. That time |
| period so they will have a few dollars for start-up | | | | period as well as the interest is determined by |
| costs. If you have a friend or family member who may | | | | personal credit history in the past 5-10 years. |
| have a little spare change, then you might want to | | | | Depending on individual circumstances, a high-interest |
| consider asking them for a loan. If they are a little | | | | loan may be offered with payment terms of less than |
| reluctant and you want to prove to them that you are | | | | two years; this does not sound appealing to most |
| serious, then it might be a good idea to draw up a | | | | looking into starting their own business but it may be |
| formal agreement that would list in detail terms for | | | | the most pragmatic solution, or better than a rejection. |
| repayment. | | | | Some people would take that rejection because they |
| If borrowing from an individual is not a possibility, then | | | | realize that they will lose more than expected during |
| you could apply for a grant. Grants come in the form | | | | the first year or two. If a bank or financial institution is |
| of money that does not have to be paid back but | | | | somewhat skeptical about lending money, they may |
| obtaining one is not easy and can be time-consuming. | | | | request that a co-signer will be necessary (remember |
| Sometimes qualifications can be very restrictive; such | | | | that wealthy friend or relative) to have the loan |
| as applicants have to be part of a minority group, | | | | approved. It may also be necessary to produce a |
| considered to be living below the poverty line or even | | | | formal business plan and/or any type of collateral that |
| residency restrictions. The individual grant application | | | | may prove that you are worthy of repaying loan. |
| can be lengthy and it must be filled out thoroughly. It is | | | | Getting money for starting a business is a job in itself. It |
| not unusual to be asked in the process how exactly | | | | starts with having to find out about start-up costs, |
| you will use the money for starting a business. | | | | getting that money plus a little extra for "incidentals", |
| Applications that are considered incomplete may be | | | | locating resources that should help to cut corners, |
| rejected and prospective recipients cannot apply until | | | | making sure that the cash flow is not too far offset by |
| the following calendar year. | | | | expenses and little mistakes that tend to occur when |
| Sometimes, the last resort is going to a bank or | | | | starting a new business for profit. |